The fluctuations in values of domestic bonds during the past two years is interesting, During the first-half of 1924 the better bonds increased some 50 per cent, in value. The reason was largely that there was a big demand for securities due to banks wishing for a reserve against note issue; to insurance companies and other institutions requiring investments of this nature; to the requirement that deposits on certain contracts should take this form; and to a rise in speculation, It was probably this last that. was the main cause for the very large fluctuations in values month by month, By the end of 1924 things had become quieter, and quotations had fallen slightly. During 1925 the demand was much steadier, and fluctuations were within smaller limits and spread over longer periods. There was a fairly constant rise in values, and final quotations were much in advance of opening quotations of the year. This may be considered as due to a continuation of the causes previously mentioned with an additional cause in the Tariff Conference, Theory and Practice In theory the controlling of the Customs duties of one nation bya group of other nations is' indefensible; and, further, the fixing of uniform rates of duty is a suggestion that would hardly recommend itself to any Finance Minister. Political theory is not, however, the only thing that has to be considered, and dis crimination in tariff rates would doubt-Jess ead to endless international complications. In view of the professions of friendliness to the Chinese shown by and their simple faith lity of the Central Government to abolish likin, it is surprising that no tice seems to have been taken of the interesting suggestion that immediate autonomy should be granted, while the collection and administration of the Maritime Customs should be temporarily retained in their present form, The surrender to Chinese demands has, far, been almost unconditional. Presumably the decisions of the Conference require the ratification of all the Powers concerned before they become operative. Remembering previous difficulties in obtaining ratifications, the surrender may not be as complete as it now appears With the political situation still uncer—tain it is impossible to attempt any predietion as to the economic future of China, but if progress has been possible in 1925. it seems probable that there will be no retrogression in 1926
Text read from the printed page and cleaned; old type leaves the occasional error.